Transforming Government Through Holacracy - Teaching Note

Companies are experimenting with novel forms of organization that distribute power to all workers and decrease or remove the role entirely of the traditional manager. These radical transformations in organization are attempted in order to recruit and retain skilled workers as well as innovate in products and services, Holacracy is one such system and is used by more than 1,000 companies across the world, including mid-size to large companies in telecommunications, finance, retail, and information technology. Washington Technology Solutions adopted Holacracy as part of a larger strategy to create an attractive, empowered workplace in government. However, after five years of Holacracy implementation, a commissioned Gartner report recommended reintroducing the standard governmental practice of hierarchy. How should the new executive leadership proceed? Should they continue Holacracy or return to standard organizational practice?